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Legislative Assembly for the ACT: 2001 Week 3 Hansard (6 March) . . Page.. 623 ..

Clause 58 agreed to.

Clause 59.

MR STANHOPE (Leader of the Opposition) (4:51): Mr Speaker, I ask for leave to move amendments Nos 8 and 9 circulated in my name together.

Leave granted.

MR STANHOPE: Mr Speaker, I move amendments 8 and 9 [see schedule 4 part 1 at page 720].

Amendment No 8 omits the word "rent" from the heading in clause 59 and amendment No 9 omits the words "rent concession" and substitutes the word "concession" in clause 59 (1). The purpose of these amendments is to give recognition to the fact that landlords give concessions other than rent subsidies. It is simply a recognition of the practice that sometimes occurs, that there are concessions other than rent subsidies granted by the landlords, and this reflects that fact.

MS TUCKER (4.52): The Greens support these important amendments. Relevant concessions that a lessor may offer a tenant and ought to be declared when working out market rent for another tenant ought not be limited to rent concessions. Concessions are a great way of trying to establish an artificially high rental and property value. You can offer a tenant of your choice something like a free fit-out or an expensive car or what have you, making it well worth the while of that tenant to pay a higher rent. Then you can use this higher rent as a basis for other rents and indeed the valuing of the premises to your own advantage.

Amendments agreed to.

MS TUCKER (4.53): I move amendment No 2 on the buff sheet circulated in my name [see schedule 2 part 2 at page 694].

This amendment is consistent with the government's amendments to clause 53 where information used to determine market rent is made available to both parties. Transparency of the process and information used in establishing market rent is crucial to its effectiveness. If a landlord chooses to support another tenant-for reasons that might include the addition of a customer attractor, the development of a point of difference or on the basis that a particular tenant has been an asset to the property but is not in a strong position at present-that may be good business but it is no reason that it should be kept secret.

In other words, whether the information is disclosed or remains confidential, property managers and owners will always need to find attractors and points of difference to draw customers to their properties. On the other hand, if the landlord wishes to represent its business and its rental income is higher than in fact it is-in order to secure artificially high rents from other tenants or in order to over-value the assets of sale, for example-then the capacity to keep confidential any information on concessions it offers will assist them in doing that.

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